Alembic Pharmaceuticals (APLLTD) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 revenue grew 17% year-over-year to INR 1,770 crore (INR 17.70 billion), with EBITDA up 9% YoY at INR 286 crore (16% margin); net profit for Q4 was INR 154 crore, down 12% YoY but up 14% QoQ.

• FY25 revenue rose 7% to INR 6,672 crore; EBITDA increased 10% to INR 1,053 crore (16% margin); net profit for FY25 was INR 583 crore, with EPS at INR 29.68.

• Dividend of INR 11 per share (550%) declared, subject to shareholder approval, unchanged from previous year.

• India Branded Business grew 8% YoY; US Generics up 20% YoY; Ex-US Generics surged 43% YoY; API business grew 4% YoY in Q4.

• Sikkim plant operations, previously disrupted by flash floods, fully resumed in February 2024; insurance claims of INR 83.61 crore were fully received.

Financial highlights

• FY25 total revenue reached INR 6,672 crore, up 7.1% YoY; EBITDA margin improved to 16.15%.

• Net profit for FY25 was INR 583 crore; net profit margin for FY25 was 8.74%, down from 9.89% in FY24.

• Cash in hand at INR 83 crore; borrowings at INR 1,196 crore; debt-equity ratio at 0.23.

• R&D spend was 9% of sales in Q4 FY25; 29 ANDA filings and 16 launches in FY25.

• Capex for FY25 was INR 412 crore, with future CapEx to be maintenance-focused.

Outlook and guidance

• FY26 guidance includes double-digit growth in key segments, higher R&D spend (INR 600-650 crore) focused on complex products and peptides, and improving margins as new facilities ramp up.

• US business expects 15+ product launches in FY26, with growth from new facilities and complex products; Ex-US business targets 40+ launches across multiple regions.

• Maintenance CapEx for FY26 expected at INR 400-450 crore; no major new projects planned.

• India business targeted for double-digit growth, with plans in place to achieve 10%+.

• EBITDA margin expected to improve over next quarters/years as facility utilization rises and R&D spend is optimized.